Chase 2nd Mortgage - didn't file claim?

[netweaver]

I listed Chase as a creditor on my chapter 13 paperwork. I owed them approximately $80K on a HELOC. Upon filing, my attorney told me that Chase would not be part of the plan and I would have to work with them directly.

I have had no contact with them, no bills, nothing. It's almost like it was wiped off of their books. When I look at my plan online, it shows that they have made no claims. Anyone have any ideas what might be going on with this? I'm afraid if I call Chase, it will alert them to a possible oversight and I will have to pay more when I really can't afford to right now.

[helpmeout]

Are you planning on keeping the house and there is equity in the house? That is the only reason that I can think of as to why your attorney would tell you that you have to work with them directly.

If you are not planning on keeping the house, then you don't have to work with them. And they are out of luck for not having filed a claim. The debt to them will get discharged at the end of your Chapter 13. If you are doing a lien strip, again, you don't have to work with them directly. Your attorney will handle the paperwork for that. And if the 2nd didn't file a claim, then that's their problem as they won't get a share like the unsecured creditors who filed a claim will.

[netweaver]

Are you planning on keeping the house and there is equity in the house? That is the only reason that I can think of as to why your attorney would tell you that you have to work with them directly.

If you are not planning on keeping the house, then you don't have to work with them. And they are out of luck for not having filed a claim. The debt to them will get discharged at the end of your Chapter 13. If you are doing a lien strip, again, you don't have to work with them directly. Your attorney will handle the paperwork for that. And if the 2nd didn't file a claim, then that's their problem as they won't get a share like the unsecured creditors who filed a claim will.

We are keeping the house and there is some equity, although not as much as it used to be. I'm just surprised I haven't heard from them yet. It has been well over a year since I've received any correspondence from them.

[spidge]

So you you do have equity so the 2nd could not be stripped and settled in BK13. It sounds like they will be waiting after your 13 is discharged before they can come after you. So I would think the first thing they may try is to get you to reafirm and start paying if you have not been. Your state laws are likely different from mine so this is just some spit balling. I can only suggest that you be ready to do a cash settlement and likely for about 25% since there is equity.

Just my quick, under the influence suggestion, so take it as such.

[momofthree]

They cannot collect from you since you are in bk. They won't even send you a statement. Since they are a secured debt, the security interest still stands regardless of your bk. They can foreclose on your property if there is equity. Was their payment amount listed on your schedule J since you're retaining the home and the lien can't be stripped? If so, then you should have been paying them all along....They cannot contact you due to the stay, you'll need to contact them regarding payment arrangements.

And, just so you know, there are no reaffirmations in Ch.13. That is just for ch.7.

[walkthaplank]

I listed Chase as a creditor on my chapter 13 paperwork. I owed them approximately $80K on a HELOC. Upon filing, my attorney told me that Chase would not be part of the plan and I would have to work with them directly.

I have had no contact with them, no bills, nothing. It's almost like it was wiped off of their books. When I look at my plan online, it shows that they have made no claims. Anyone have any ideas what might be going on with this? I'm afraid if I call Chase, it will alert them to a possible oversight and I will have to pay more when I really can't afford to right now.

Your HELOC is secured debt using your home as collateral. Since you aren't able to strip the lien, and your district allows you to pay secured debt outside of your plan, you need to pay them. If you don't pay them they can foreclose on you or even have your CH13 dismissed for failing to pay your secured debt. While Chase isn't a part of your plan where the trustee makes the payment, they are definitely part of your plan to determine your DMI. Keeping that payment current is part of your plan.

Trust me when I say your debt has NOT been wiped off of their books. Many secured creditors will not send statements or correspondence to you while you are in an active CH13 plan so it is up to you to continue making the payments. My credit union that financed my car will not send me any kind of statement, and it is a pain the behind to keep paying it every month without one. I don't know why Chase wouldn't file a claim, but they don't lose any rights if they don't because the debt is still secured by the property, this type of debt won't be discharged at the end of your plan and if you don't pay them, they will come after you with interest and penalties from the moment you stopped paying them, CH13 or no.

[netweaver]

Thanks for the replies. I plan to contact them in the next couple of weeks.